Capital Markets Update 2020

Value creation through improvement and growth

The highlights from the presentation:

• Focus on high potential regions of Norway and Canada. Initiative to divest Shetland assets
• Targeting average farming cost below NOK 40/kg in Norway and below CAD 7/kg in British Columbia, which is 10-15% below current levels
• Introduce cost and efficiency measures in the areas of smolt infrastructure development, improve fish health and welfare, focus on preventative farming practices and execute value chain repositioning
• Targeting production of 100 000 tonnes in 2022 and 130 000 tonnes in 2025. Adjusting for the initiated divestment of the Shetland assets, this corresponds with the previously announced ambition to produce 150 000 tonnes in 2025. The production target of 90 000 tonnes in 2020 is maintained
• Total investments next five years to reach 130 000 tonnes in 2025 is estimated to be NOK 2,6 billion (excluding biomass and maintenance)
• Grieg Seafood shall maintain sufficient financial capacity to execute the growth strategy. The company presents a solid projected cash generation in the medium- to high-price scenarios and even in a low-price scenario of NOK 50 per kg the next five years, the growth investments are projected to be funded
• In the short term, the company is pursuing three potential sources of capital
  • Extending a current bridge loan to after a divestment of Shetland assets
  • Continue a dialog with GIEK on financing of the Newfoundland project
  • Following the successful issue of a Green bond in June, Grieg Seafood intends to actively utilize the bond market
• Grieg Seafood reiterates its goal to provide a competitive dividend pay-out over time

Download the presentation here.

Watch the presentation here.